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If you’ve recently been in a car accident and your car has been damaged, you might be wondering how to go about covering the costs of repair. If you have collision coverage, great! We believe everyone should have collision coverage. Collision coverage can be seriously helpful should you ever be hit by an uninsured motorist.
Knowing what to do in regards to insurance and covering the property damage to your car can be confusing, especially if you’re a safe driver and have never been in an accident. But we’re here to help explain. You have options to cover your property damage with collision coverage: go through your own insurance, or the other driver’s. Both have their pros, and both have their cons.
The Pros of Going Through Your Own Insurance Carrier
- Your own insurance company will want to make you happy – they’ll likely be timely regarding the situation
- It’s quicker than going through the other party’s insurance, since there’s initially no investigation into who’s at fault
- You’re entitled to that coverage even if you’re at fault
The Cons of Going Through Your Own Insurance Carrier
- There’s a deductible involved with collision coverage – usually between $500-$1,000 – and your coverage will only kick in after your deductible has been met
- After your insurance carrier has paid you for your car damages (minus deductible), they will perform what is known as “subrogation”
- Your insurance carrier will contact the other driver’s insurance company in attempt to prove their liability for the damage and recover funds for the costs of the repairs including your deductible
- Scenarios: If you are found to be 70% liable, you’ll be reimbursed with 30% of your deductible; if you are found 40% liable, you’ll be reimbursed with 60% of your deductible; if you aren’t found at fault, your deductible will be reimbursed in full; but, if you are found fully at fault, your deductible will not be reimbursed
The Pros of Going Through The Other Driver’s Insurance Carrier
You may believe that you are not at all at fault for this car accident. And so, you choose to file a claim against the “at-fault” driver’s insurance carrier so their collision coverage can pay for your car’s damage. There’s one important pro in this decision.
- If the driver’s insurance company agrees that they are at fault, there is no deductible involved
The Cons of Going Through The Other Driver’s Insurance Carrier
- If the driver’s insurance company does not agree that they are at fault, they will conduct a full investigation and only voluntarily pay for what they believe they’re at fault for
- Investigation could take a long time
- Insurance companies may be biased and favorable toward their policy holder
- You’ll only be offered an amount based off the percentage they believe their driver to be at fault
- Even if this offer is unfair, you can only negotiate so far before your case ends up in court
We know how confusing it can be to deal with insurance companies, even if it’s your own. So we take every chance we can get to clarify confusion, answer questions, and be an informative outlet for our followers. We hope you never have to deal with this scenario, but should you need to, we hope this helps.